(Newswire.net — October 5, 2014) — Although the announcement involved just a few movies, the news immediately turned heads in the entertainment industry.
The production company wants to control the whole process, from the writing of the script to the consumer experience on the premiere. That not only helps Netflix to nestle among established movie studios, but also undermines the movie business.
To date, no technology company has had the budget to distribute their films directly to consumers and to draw elite movie stars in Hollywood away from theatres.
Several theater companies sharply criticized Netflix this week, threatened to boycott any film that appears on Netflix first.
“We will not participate in an experiment where you can see the same product on screens varying from three stories tall to three inches wide on a smartphone.” said Russ Nunley, spokesman for Regal Cinemas, which operates 7,341 screens in 573 theaters in the United States.
However, some moviemakers are embracing the rise of such video streamers, which gives them more distributors to bid for their content.
“The movie going experience is evolving quickly and profoundly, and Netflix is unquestionably at the forefront of that movement,” said Harvey Weinstein, co-chairman of the Weinstein Co. which sequel “Crouching Tiger, Hidden Dragon: The Green Legend,” is to be released on Netflix and a select number of Imax theaters. The original earned $213.5 million at the global box office.
Netflix executives said “The existing business models for movies are hugely frustrating for today’s on-demand consumer.” They pushed to produce movies because they often had to wait up to 18 months after a movie’s release before they could buy the rights to screen them.
“Everyone has a big stake in the status quo, and incumbents don’t like change.” said in a phone interview Ted Sarandos, Netflix’s chief of content.
Netflix didn’t release the financial terms of its deal with Sandler, the company said. The company also didn’t provide details about the movies or their release schedule.